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Does Pricing a London Ontario Home A Little Higher So You Can Come Down in Price Work?

Price a London Ontario House High, Accept  Less?

I hear this all the time from home sellers: “Let us List it High Because Someone Will Offer Us, Less”

How Much Do I list my home in London Ontario For

That thinking may have worked years ago but in today’s real estate environment, homebuyers have a tremendous amount of information by just a few clicks of the mouse, today’s buyers know prices and if you list a house or condo for sale in London Ontario too high, it could really cost you!

I Want to List it High Because I Know Someone, Will Offer Less

When a home seller interviews a Realtor, it’s easy to get caught up in the excitement of choosing a sales price. If a seller can get more money for the home, it means more financial opportunities for them. Unfortunately, uninformed sellers often choose the Realtor who tells them they will list it at the highest list price or worse, the lowest commission. This is, by far, the worst mistakes a home seller can make.

Establishing Value:

The reality is that it doesn’t matter how much money a home seller thinks their home is worth. The only person whose opinion really matters is the buyer who is going to make an offer, and of course, the appraiser. Pricing a house is part science and part art. It involves comparing similar houses in similar neighbourhoods of London, making the necessary adjustments for the differences between them, charting market movements and measuring the amount of housing inventory, all of this in an attempt to help determine a range of value.  This is the same method appraisers use to evaluates a house. No two appraisals are exactly the same; they are, however, generally close to one another. There is no hard and fast way to just stick a price on a home in London Ontario and area.

Is the Price Too Low?

Houses sell at a price a buyer is willing to pay and a seller is willing to take. If a house is priced too low the seller should expect to receive multiple offers and drive up the price up to the market value.  There is not much danger in pricing a home under its actual value and your competition. The danger is in pricing a house or a condo too high and having the home sit on the market for weeks, even months.

How It Starts To Go Wrong

The home seller did not interview more than one Realtor. They may have picked the first Realtor off the Internet because they have a very low commission fee, or was recommended by a friend or a co-worker  The first Realtor priced their house at $495,000. After 90 days of sitting on the market, the listing expired.

It Continues To Go Wrong
The next Realtor they hire goes and lists the house for $475,000. A few weeks pass and eventually, the price drops to $465,000 and still no offers. A few people looked at the house, but no serious buyers came forward.

The Home Owner is Now Tired & Exhausted

The home seller and the Realtor then price the home at $437,000 and sold very quickly.  The sad part is that the comparable sales in the neighbourhood fully justified a price of $455,000, but the home had been on the market for too long at the wrong price, and now the market had slowed.

Protect Yourself

The question is how much money does an expired listing cost the homeowner? The financial losses often exceed the extra mortgage payments paid and goes beyond the cost or the hassle factor of trying to keep a home spotless during the listing period. It affects the value that a buyer ultimately chooses to pay because it is no longer a “fresh” listing.  It’s now stale, dated, a home that was overpriced for too long.

Don’t let it happen to you. Don’t be that seller of an expired listing.   Be sure to hire a professional Realtor to price your home correctly from the beginning.

Even with the London Ontario real estate market booming at the present time, the above still happens! Most houses and condos in London are selling for close to full price or more and within 1-2 weeks and yet, there are hundreds of properties that have been on the market for over 76 days!

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Ty Lacroix

"Not All Realtors Are The Same"! This website and content are for you and designed and constantly upgraded with the latest real estate trends, how-to’s and what is for sale on MLS. All the so-called Gurus of marketing and branding say a Realtor and their Brokerage should have a bio to let people know about them. I have always felt bios were boasting, bragging, or trying to impress readers; I’ve always felt that our actions and results should impress and not be all talk and no action! As they say in Texas:” All hat and no cattle”! So here goes: We are a small brokerage by choice but mighty in results (over $103 million in transactions since 2014). Our primary source of business is guiding home buyers and sellers to make good decisions. We are transformational in nature and by choice, not transactional! We believe selling real estate is a process, not an event or knee-jerk reaction; we sleep well at night and ensure our clients do as well by systemizing the predictable and humanizing the exceptional ( the last seven words are plagiarism, I have copied this from the Four Seasons Hotels & Resorts)! We are not for everybody, nor can we please everybody, nor do we tell people what they want to hear; I know that may be old-fashioned and perhaps in this era of me-tooism, deservism and impersonal artificial intelligence (an oxymoron), calls on hold for hours or people being busy looking after their busyness that expectations may be jaded! If you would like to know more about the disadvantages of us helping you, contact me, Ty Lacroix, Owner and Broker of Record; however, the advantages are exposed on this site. About Ty Founder & Owner & Broker of Record of Sutton Group Envelope Real Estate Inc, That's all I can say about me! You see, this is about you, not me; you do not want to hear blah blah stuff about awards, designations, or that we walk old people across the street (I used to help old ladies cross the street, but as I got older I did not want my wife to think I was flirting) the reincarnation of Mother Teresa, walk on water or anything else to impress you. We let the numbers speak for themselves; you see, success leaves clues!

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